pcNewsWire – Genesis Metals Corp (TSX-V: GIS) has closed previously announced non-brokered private placement , issuing 1,750,000 units at $0.14 per unit for gross proceeds of $206,500 and 3,900,000 flow-through units at $0.16 per FT unit for gross proceeds of $624,000.
Osisko Mining Inc. acquired 4,675,000 common shares and 2,337,500 warrants representing 6.4% of the issued and outstanding common shares of the company and 9.6% on a partially-diluted basis. Prior to the financing, Osisko Mining did not own any securities of the company.
News Release
Genesis Closes $830,500 Private Placement
Osisko Mining Acquires 9.6% on a Partially-Diluted Basis
Vancouver, British Columbia – Genesis Metals Corp (TSX-V: GIS) (“Genesis” or the “Company”) has closed its non-brokered private placement (the “Financing”) previously announced on June 6, 2017.
The Company issued a total of 1,750,000 units (“Units”) at the price of $0.14 per Unit for gross proceeds of $206,500 and 3,900,000 flow-through units (“FT Units”) at the price of $0.16 per FT Unit for gross proceeds of $624,000.
Each Unit consists of one common share of the Company one-half of one warrant, each whole such warrant exercisable to purchase one common share at $0.20 per share until June 15, 2019.
Each FT Unit consists of one flow-through common share of the Company one-half of one warrant, each whole such warrant exercisable to purchase one non-flow-through common share at $0.23 per share until June 15, 2019.
Upon completion of the Financing, Osisko Mining Inc. (“Osisko Mining”) acquired 4,675,000 common shares and 2,337,500 warrants representing 6.4% of the issued and outstanding common shares of the Company and 9.6% on a partially-diluted basis. The above percentages are calculated based on 73,026,204 common shares issued and outstanding after giving effect to the Financing. Prior to the Financing, Osisko Mining did not own any securities of the Company.
“We are pleased to welcome Osisko Mining as a significant shareholder,” said Brian Groves, chief executive officer and chairman of Genesis. “The proceeds from this financing and the preceding offering will now allow Genesis to focus on advancing the Chevrier project.”
In consideration of arranging the Financing, the Company paid finders’ fee to Medalist Capital in the aggregate amount of $51,275 paid in cash and issued a total of 327,250 finders’ warrants, each exercisable until June 14, 2019 to acquire one common share of the Company at $0.14 per share (as to 54,250 finders’ warrants) and $0.16 per share (as to 273,000 finders’ warrants), respectively.
All securities issued in connection the Financing (including shares, warrants, finders’ warrants and any shares issued upon the exercise of warrants and finders’ warrants) are subject to a hold period and may not be traded until October 16, 2017 except as permitted by applicable securities legislation and the rules and policies of the TSX Venture Exchange.
The Company intends to use the net proceeds of the Financing to advance its Chevrier gold project and for general working capital purposes.
About Genesis Metals
The Company is focused on advancing the Chevrier Gold Deposit located 35 km southwest of Chibougamau, Quebec. The Project is located along the Fancamp Deformation Zone, 15 km northeast of the high-grade Monster Lake gold discovery.
Genesis also owns 100% the 203 km2 October Gold project located in the southern Swayze greenstone belt in Benton Township, Ontario. This project is located 35 km northwest of IAMGold’s Cote Lake deposit and 50km southeast of Goldcorp’s Borden gold deposit.
ON BEHALF OF THE BOARD
“Brian Groves” “Jeff Sundar”
Brian Groves Jeff Sundar
CEO and Director President and Director
Suite 1500, 409 Granville Street, Vancouver, BC V6C 1T2
Telephone: 604-646-8356 Fax: 604-484-7155
Email: js@genesismetalscorp.com
Website: www.genesismetalscorp.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
